Joan Burton (Dublin West, Labour)
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Question 152: To ask the Tánaiste and Minister for Finance the number of Irish domiciled residents who are non-resident for tax purposes here and are high net worth individuals who have been identified by his Department or the Revenue Commissioners; if the Revenue Commissioners are identifying and monitoring the amount of time such individuals spend here per year; if he has an estimate of the tax foregone in respect of such individuals; and if he will make a statement on the matter. [35954/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that its Large Cases Division looks after the tax affairs of high wealth individuals. The 2005 income tax returns show that 19 of these individuals filed returns on which they claimed non-residency for Irish tax purposes.

I am further advised by the Revenue Commissioners that residence is a feature of its risk-based programmes and that the procedures adopted in validating non-resident status depend on the circumstances in each case. The administration of the validation procedures is a matter for the Commissioners and the methods used to verify claims to non-residence include a range of tests and an intelligence-based dimension which, for obvious reasons, is not publicised.

In relation to work carried out as part of its risk-based programmes, Revenue has previously advised me that it has no reason to conclude that there are failures to comply with the rules governing non-resident status. However, Revenue continues to include a cross-section of non-resident cases in its risk-based programmes.

I am informed by the Revenue Commissioners that Irish citizens, who are non-resident for tax purposes, are obliged to file Irish tax returns only in respect of:

income arising in Ireland (e.g. income from directorships, a trade or profession, rented properties etc); and

Gains from the disposals of land, buildings or shares which derive their value from these assets, and certain other assets such as minerals in the State or other assets related to exploitation of such minerals.

There is no statutory obligation on these citizens to return details of income or gains arising anywhere else in the world. Therefore, it is not possible to establish the amount of these incomes or gains, including any associated tax.